June’s annual percentage rate of 5.82% marked a 17% increase since January 2018. Add rising rates to a virtually saturated U.S. market, record-high vehicle prices, and historically high numbers of people who owe more than their cars are worth, and the stage is set for a market contraction, the firm said.

The automaker will collaborate with Autotalks to develop the next generation Vehicle to Everything chipset for connected cars. The technology aims to improve vehicle and road safety, mobility and is viewed as vital for autonomous driving.